West Texas carbon dioxide plant starts up

By OGJ editors
HOUSTON, Nov. 8
-- SandRidge Energy Inc., Oklahoma City, began operation of its Century gas treatment plant in Pecos County, Tex., on Sept. 26.

The Val Verde basin plant was processing 85-90 MMcfd of raw gas in early November, and SandRidge and is troubleshooting compressor vibration issues. The company calls the plant the largest single industrial source carbon dioxide capture facility in North America.

SandRidge plans to shift a further 170 MMcfd of raw gas from nearby legacy plants to Century by the end of November, by which time all of the high-CO2 gas the company produces will be processed at Century.

SandRidge will retain and sell the methane separated from the inlet gas, while Occidental Petroleum Corp., a partner in the Century plant, will ship the extracted CO2 for use in Oxy’s enhanced oil recovery projects in the Permian basin (OGJ, Dec. 7, 2009, p. 41).

Oxy said the new CO2 stream is expected to hike its Permian output by as much as 50,000 boe/d within 5 years. The company operates 28 active CO2 projects in the basin.

SandRidge, meanwhile, has begun to emphasize oil and liquids drilling and production over gas the past 2 years. Continuance of this shift means it will run only a single rig in the Val Verde basin through the end of 2011, down from 34 rigs in the 2008 third quarter (OGJ, Nov. 24, 2008, p. 34). It therefore expects its gas production to decline.

The company holds 550,000 acres in the West Texas overthrust, about 500,000 acres of which expires in 2011-12. Pinon field proper is held by production.

Oxy said last month it expects the Century plant to yield about 180 MMcfd of CO2 next year to support its Permian EOR operations. Oxy said it is contracting additional CO2 from other sources and “will use penalty payments due from the operator for underproduction to support these activities.”

Related Articles

Sharp drop expected in global E&P spending in 2015, study says

01/19/2015 Global capital expenditures for oil and gas exploration and production projects are expected to drop 17% to $571 billion in 2015, according to Cowe...

Sharp drop expected in global E&P spending in 2015, study says

01/08/2015 Global capital expenditures for oil and gas exploration and production projects are expected to drop 17% to $571 billion in 2015, according to Cowe...

People

10/17/2014 David Lawler has accepted the role of chief executive officer of BP PLC.'s Lower 48 Onshore business and resigned his role as executive vicepreside...

Fieldwood to acquire gulf assets from SandRidge for $750 million

01/07/2014

Fieldwood Energy LLC has purchased certain offshore Gulf of Mexico and onshore Gulf Coast assets from SandRidge Energy Inc. for $750 million.

Forest Oil to sell Permian basin assets

12/03/2009 Forest Oil Corp. of Denver agreed to sell its remaining Permian basin properties for $800 million to SandRidge Exploration & Production LLC.

SandRidge to acquire Crusader Energy Group

09/23/2009 SandRidge Energy Inc. said it will buy bankrupt Crusader Energy Group Inc. for $230 million, no more than $85 million of which will be cash. Both a...

More West Texas Overthrust exploration set

12/11/2008 Cantex Energy, in partnership with Big Canyon Energy, signed an exploration and development agreement with Slawson Exploration covering the Big Can...

SandRidge developing West Texas Overthrust

11/07/2008 SandRidge Energy expects to be operating 20 rigs in the West Texas Overthrust by the end of 2008, down from 27 rigs in early November and a third q...

Oxy invests in new large CO2 source for Permian basin EOR

07/03/2008 Occidental Petroleum with its agreement with SandRidge Energy plans to increase substantially the amount of CO2 available in the Permian basin for ...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


Cognitive Solutions for Upstream Oil and Gas

When Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected